Wang Yang, Director Assistant of ShenYin & WanGuo Futures Research Institute, delivers his report of Global economic pattern trend.

Mr. Wang delivers the report into three parts.

First, economic cycles and policy cycles. Mr. Wang conducted an in-depth analysis of economic cycles and policy cycles from both Chinese domestic and international perspectives. From an international perspective, he examined various indicators such as manufacturing and services PMI, consumption, unemployment, and interest rates, which indicated the resilience of the U.S. economy and the accelerated weakening of the European economy. From a domestic perspective, he discussed China's slow economic recovery and its response in terms of switching economic momentum, consumer and industrial product prices, social stock, and economic policies.

Second, economic structure and industrial upgrading. Mr. Wang compared economic data before and after the pandemic and pointed out that the prominent contradiction in the current economic operation is insufficient total demand. Additionally, the real estate market's recovery falls short of expectations, and there is overcapacity in the manufacturing industry. Mr. Wang believes that China's economic volatility is decreasing, and there is a weak long-term economic growth expectation, requiring reliance on policies for short-term cycles.

Third, asset price stability and exchange rate estimation. In this section, Mr. Wang highlights that stabilizing asset prices helps boost market confidence. At the same time, he mentions that the fundamentals are supporting the market, and there are abundant policy tools to control the depreciation of the Chinese yuan. Furthermore, Mr. Wang conducts a thorough analysis of the capital market by considering policy factors and specific data.